Question 1

Decision: 
•

Accepted Answer

a choice made from available alternatives

Question 2

Decision making:

Accepted Answer

the process of identifying problems and
opportunities and then resolving them

Question 3

• Programmed decisions:

Accepted Answer

involve situations that have occurred
often enough to enable decision rules to be developed and
applied in the future

Question 4

• Nonprogrammed decisions:

Accepted Answer

made in response to situations
that are unique, are poorly defined and largely unstructured,
and have important consequences for the organization

Question 5

Certainty:

Accepted Answer

situation in which all information the decision maker
needs is fully available.

Question 6

• Risk:

Accepted Answer

decision has clear-cut goals and good information is
available, but future outcomes associated with each alternative
are subject to chance of loss or failure.

Question 7

• Uncertainty:

Accepted Answer

goals are known, but information about
alternatives and future events is incomplete.

Question 8

Ambiguity:

Accepted Answer

goals to be achieved or problems to be solved are
unclear, alternatives are difficult to define, and information
about outcomes is unavailable

Question 9

Classical model:

Accepted Answer

based on rational economic assumptions
and manager beliefs about what ideal decision making should
be

Question 10

Normative:

Accepted Answer

how a decision maker should make a decision

Question 11

Administrative model:

Accepted Answer

use of a rational decision-making
process within the limits of human and environmental factors

Question 12

• Descriptive:

Accepted Answer

how managers actually make decisions in
complex situations

Question 13

• Bounded rationality:

Accepted Answer

people have limits or boundaries on how
rational they can be

Question 14

• Satisficing:

Accepted Answer

choosing the first solution that satisfies minimal
decision criteria

Question 15

Intuition: 
ht

Accepted Answer

quick apprehension of decision situation based on
experience but without conscious thought

Question 16

• Quasirationality:

Accepted Answer

combining intuitive and analytical thought

Question 17

Coalition:

Accepted Answer

informal alliance among managers who support
specific goal

Question 18

Directive style:

Accepted Answer

prefer simple, clear-cut solutions to problems

Question 19

• Analytical style:

Accepted Answer

base decisions on all available rational data

Question 20

• Conceptual style

Accepted Answer

: use a broad amount of information to solve
problems creatively

Question 21

• Behavioral style:

Accepted Answer

exhibit a deep concern regarding effect of
decision on others

Question 22

Anchoring bias:

Accepted Answer

occurs when we allow initial impressions,
statistics, and estimates to act as anchors to our subsequent
thoughts and judgements

Question 23

Loss aversion:

Accepted Answer

stronger response to a potential loss than to
an expected gain

Question 24

Confirmation bias:

Accepted Answer

occurs when a manager puts too much
value on evidence that is consistent with a favored belief or
viewpoint and discounts evidence that contradicts it

Question 25

Brainstorming:

Accepted Answer

uses a face-to-face interactive group to
spontaneously suggest as many ideas as possible for solving
a problem

Question 26

• Electronic brainstorming:

Accepted Answer

brings people together in an
interactive group over a computer network

Question 27

Devil’s advocate:

Accepted Answer

person assigned the role of challenging the
assumptions and assertions made by the group

Question 28

Groupthink:

Accepted Answer

tendency of people in groups to suppress
contrary opinions

Question 29

Escalating commitment:

Accepted Answer

continuing to invest time and
money in a solution even when there is strong evidence that it
is not appropriate

Question 30

Postmortem, or after-action review:

Accepted Answer

disciplined procedure
whereby managers invest time in reviewing the results of
decisions on a regular basis and learn from them

Question 31

• Premortem:

Accepted Answer

purposefully imagining a decision has been
implemented and has failed miserably, and then identifying
reasons for the failure so that problematic issues can be
addressed in advance

Question	Answer
Decision: •	a choice made from available alternatives
Decision making:	the process of identifying problems and opportunities and then resolving them
• Programmed decisions:	involve situations that have occurred often enough to enable decision rules to be developed and applied in the future
• Nonprogrammed decisions:	made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization
Certainty:	situation in which all information the decision maker needs is fully available.
• Risk:	decision has clear-cut goals and good information is available, but future outcomes associated with each alternative are subject to chance of loss or failure.
• Uncertainty:	goals are known, but information about alternatives and future events is incomplete.
Ambiguity:	goals to be achieved or problems to be solved are unclear, alternatives are difficult to define, and information about outcomes is unavailable
Classical model:	based on rational economic assumptions and manager beliefs about what ideal decision making should be
Normative:	how a decision maker should make a decision
Administrative model:	use of a rational decision-making process within the limits of human and environmental factors
• Descriptive:	how managers actually make decisions in complex situations
• Bounded rationality:	people have limits or boundaries on how rational they can be
• Satisficing:	choosing the first solution that satisfies minimal decision criteria
Intuition: ht	quick apprehension of decision situation based on experience but without conscious thought
• Quasirationality:	combining intuitive and analytical thought
Coalition:	informal alliance among managers who support specific goal
Directive style:	prefer simple, clear-cut solutions to problems
• Analytical style:	base decisions on all available rational data
• Conceptual style	: use a broad amount of information to solve problems creatively
• Behavioral style:	exhibit a deep concern regarding effect of decision on others
Anchoring bias:	occurs when we allow initial impressions, statistics, and estimates to act as anchors to our subsequent thoughts and judgements
Loss aversion:	stronger response to a potential loss than to an expected gain
Confirmation bias:	occurs when a manager puts too much value on evidence that is consistent with a favored belief or viewpoint and discounts evidence that contradicts it
Brainstorming:	uses a face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem
• Electronic brainstorming:	brings people together in an interactive group over a computer network
Devil’s advocate:	person assigned the role of challenging the assumptions and assertions made by the group
Groupthink:	tendency of people in groups to suppress contrary opinions
Escalating commitment:	continuing to invest time and money in a solution even when there is strong evidence that it is not appropriate
Postmortem, or after-action review:	disciplined procedure whereby managers invest time in reviewing the results of decisions on a regular basis and learn from them
• Premortem:	purposefully imagining a decision has been implemented and has failed miserably, and then identifying reasons for the failure so that problematic issues can be addressed in advance

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